The loan will finance the expansion and improvement of energy supply, increasing efficiency, improving service reliability and increasing power generation from renewable sources such as hydro, geothermal and wind.
The project involves the installation of about 640 km of new transmission lines, construction of nine new substations and improving existing lines and substations by upgrading their capacity and voltage.
Source: European Investment Bank
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Since litigation began in 2008 regarding the funding of LaGeo, investment plans in El Salvador have ben stalled, but are now coming back into effect.
An article in Laprensagrafica reports that the company Enel will invest $127 million in El Salvador next year as part of the original plan which was based on an agreement with shareholders that the Italian company would provide more capital, in exchange for just over 50% of the shares of the geothermal company LaGeo. This investment plan has been frozen since 2008 after ENEL began arbitration proceedings against ENEL Investment Energy (INE) and the Lempa River Hydroelectric Executive (CEL) because they wouldnt allow the funding.
The IFC will provide $ 50 million and mobilize an additional $ 140 million to support the construction of a new geothermal power plant.
This plant is the largest project in Nicaragua in over 25 years in this sector. This initiative will foster the generation of renewable energy, expand electrification and help reduce the country's dependence on imported fuels.
IDB concessional loan will benefit 1.7 million people and develop new sources of renewable energy, contributes to $381 million multi-donor program
Nicaragua has embarked on a historic program to transform its energy matrix and expand access to electricity among the poor with help from a $30.5 million concessional loan approved on July 7 by the Inter-American Development Bank.
Empresa Nacional de Transmisión Eléctrica has taken out a $48 million loan from South Korea for new substations and distribution lines.
From a press release by Empresa Nacional de Transmisión Eléctrica (Enatrel):
The Government through Empresa Nacional de Transmisión Eléctrica (Enatrel) has signed a cooperation contract with company representatives from DAEWOO International Corporation and Hyundai Engineering, Company Limited, in the amount of $25 million, resources which are to be invested in building the new substations El Sauce, in the department of León, and Ocotal, Nueva Segovia, and also in the expansion of substations San Ramon, Matagalpa and Esteli, in the department of Estelí. In addition assembly of transmission 138 kV (kilovolt) lines will be made to link these to the National Interconnected Electrical Substation .